Avoid Being a Victim of Wire Fraud
When sending a wire to an individual, it's important to be aware of the potential red flags that could indicate fraud, or a scam. Below are a few warning signs to watch for:
- Unsolicited Request for a Wire Transfer Red Flag: If the individual you’re wiring money to contacted you first, especially through email, phone calls, text, or social media, proceed with caution. Why: Scammers often contact victims unexpectedly, pretending to be someone they know.
- Urgency or Pressure to Act Quickly Red Flag: If the individual insists that the wire must be completed immediately and uses phrases such as, “time is running out”, or “you could be missing out on a great opportunity”, it’s a red flag. Why: Scammers often create a sense of urgency to prevent the victim from verifying the situation.
- Requests for Unusual or Irregular Payment Methods Red Flag: If the individual asks for a wire transfer to an unusual account, especially to a foreign country, or requests that the funds be sent through a money transfer service (Western Union/Money Gram) it could be a scam. Why: Scammers often request wire transfers or services that are hard to trace, making it easier to not get caught.
- Inconsistent Communication Red Flag: If the individual you are wiring money to provides wire instructions for a different name, phone numbers, or their communication style changes suddenly (they seem more urgent or demanding), be cautious. Why: Scammers often use fake identities to avoid detection.
- Too Good to Be True Offers Red Flag: If the individual offers you an unusual return or incentive (such as an investment opportunity) that sounds too good to be true, it likely is a scam. Why: Scammers often lure victims in with promises of high return rates, or rewards in exchange for payment or wire transfer.
How to protect yourself:
- Always verify the identity of the person (or business) you are sending money through by calling them directly or using their website contact information.
- Do not send a wire to someone who you don’t know, or trust. Especially if they contacted you first.
- Consult with trusted individuals or legal advisors before sending a wire, especially if it’s to someone you haven’t dealt with before.
- Wires are often irreversible, once the money is sent, it can be very difficult to recover. (Think of it like giving the receiver of the wire cash)
- If possible, use an alternate form of payment (like credit cards, ACH, etc.) that offer some protection against fraud.
- If you are unsure about the transaction, take the time to double check the situation and ensure you’re not falling for a scam.
- Trona Valley FCU may work directly with the financial institution that received the wire transfer to try to reverse the transaction or freeze the funds, but there is no guarantee that the receiving financial institution will agree to reverse the transfer, especially if the funds are withdrawn immediately.
Safeguard Your Information
- Never provide confidential information, such as Social Security Number or Date of Birth, to someone unless you have initiated the contact.
- If you are contacted by phone or email and asked to confirm your confidential information, do not respond. Contact us immediately at 800-331-6268 or send us a notification on our website: www.tronavalley.com. Do not use the phone number provided in the email correspondence or that the caller provides to you.
- Do not share passwords or your Personal Identification Number (PIN) with anyone.
- When completing online applications or making purchases, ensure the website is utilizing encryption and the page shows as “https”.
- Do not record your Social Security number on a check, traveler’s check, gift certificates, etc., unless required by law.
- Do not share confidential information such as your Date of Birth or Address on social media. Fraudsters can obtain this information and begin to build a “synthetic ID” to commit fraud.
- If possible, go to the United States Postal Service and put your mail in their drop box. We highly recommend not putting it in your mailbox at home as fraudsters can steal your mail and obtain your name, address, routing number, and account number off of your check.
Eliminate Paper
- Utilize electronic options, such as Direct Deposit, eStatements or Bill Pay to reduce paper with your personal information printed on it which could be stolen in the mail.
- Watch for the signs of identity theft such as receiving bills in the mail for things you didn’t authorize.
- Utilize a shredder to render paper bills and statements unreadable.
Secure Your Computer & Mobile Device(s)
- Employ strong passwords and PINs on all devices.
- Engage auto-lock features on devices.
- Change passwords regularly and never share them with anyone.
- Do not allow your computer or mobile device to save passwords.
- Do not click on links embedded in emails or text messages that look suspicious.
- Ensure your device is equipped with Anti-Virus, Firewall, or other computer security features.
- Keep your operating system and software up to date by installing updates as soon as possible.
Spot Phishing Attempts
Criminals “phish” for your personal information. Phishing can take place via phone calls, emails, text messages, visiting your place of business or by directing you to a phony website that claims to be a legitimate business.
Criminals attempt to trick us into believing the communications we are seeing, or hearing, are from someone we can trust. They disguise their emails and text messages to look as though they’re from a legitimate business. Often, they employ some type of scare tactic to entice you to open the communication and/or provide account information. For example, emails and text messages may state they are from:
- UPS claiming there is a “problem with your shipment.”
- A financial institution claiming there is a “problem with your banking account.”
- The Better Business Bureau stating “A complaint has been filed against you.”
- Court system stating that “You have been served with a subpoena.”
Another trick will be to make something sound easy, such as “complete this quick survey.”
If you receive a phone call, email, text message, or visit to your place of business that you question, take the time to validate the communication before taking any action requested. Do not use the contact information provided in the email, text message, or by the individual. Instead, use the number advertised on the company’s statement or website.
Protect Against Malware
Malware is generally a computer virus or spyware intended to harm your computer. Computers become infected with malware through several mechanisms – sharing files on USB drives or DVD’s, opening suspicious e-mail attachments, clicking on links in e-mails, or visiting websites that are themselves infected with malware. Malware can also arrive with downloaded files, such as music or videos from peer-to-peer file sharing networks, or simply by visiting a website that has been hacked and infected.
Any website that is not properly secured can be hacked and infected with malware that could infect your computer. You will not likely receive any warning that malware is being downloaded onto your computer. In most cases, the website owners themselves do not know their sites have fallen victim to dispersing criminal malware.
Don't Become a Money Mule
Money mules are victims who become a middleman for the laundering of illegal or stolen funds. The victim is lured by an easy way to make large sums of money. Criminals then ask for the funds to be sent to another recipient, who is often the criminal. The layering of transactions helps to mask the criminal’s identity. The money mule may keep a commission for performing the transfer or wire. The victims of these scams are often left financially responsible for returning the stolen funds.
Common signs of a money mule scam:
- Overseas companies requesting money transfer agents in the United States.
- Opening new bank accounts to receive money from someone you don’t know.
- Accepting large sums of money into your personal bank account for a new job.
- Transferring or wiring funds out of your personal bank account to people you do not know.
Looking for More Information?
If you are a victim of financial fraud, file a fraud report through the Federal Trade Commission. That's the agency tasked with shutting down scammers. They use these fraud reports to help them build their cases. If you're a victim of identity theft, report your case at IdentityTheft.gov. Consider filing a report with your local law enforcement. They may not investigate your case, but the report could help you dispute fraudulent transactions.
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A resource provided by the National Credit Union Association (NCUA) to educate and protect consumers.
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